We explore Lithuanian credit register data and two bank closures to provide a novel estimate of firms' bank …-switching costs and a novel identification of the hold-up problem. We show that when a distressed bank's closure forced firms to …' reputational concerns, a healthy bank's closure revealed no overcharging. To policy-makers, our results suggest potential benefits …

Using unique micro-data that contain the internal information on all corporate customers of a large Nordic bank, I show …